friday update -- MrSwing

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friday update
Aug 02, 2008

Tony

the ELLIOTT WAVE lives on
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SHORT TERM: market lower in quiet trading, DOW -52

Overnight the Asian markets were mostly higher, but Europe opened lower and closed -1.15%. At 8:30 the US gov't reported that non-farm payrolls had dropped for the seventh straight month, 463K jobs have been lost since December. Unemployment rose to 5.7% a 4 year high. Nevertheless, the market opened higher as the SPX hit 1271, the high for the day. A pullback followed until 10:00 when the SPX hit 1255, the low for the day. Also at 10:00 ISM manufacturing reported a slight downturn, and construction spending was reported -0.4%. Off this low the market essentially toggled the 1261 pivot for the rest of the day, while maintaining a 10 point trading range. At the close the SPX/DOW were -0.50%, and the NDX/NAZ were -0.90%. Bonds were up over 1/4 point, Crude gained $1.05, Gold slipped $3.25, and the Euro was lower. Support for the SPX remains at 1261 and then 1240, with resistance at 1287 and then 1316. Short term momentum rose a bit off of oversold levels, while the near term indicators continued to edge lower. Thus far, the 1261 pivot is holding support and the market should rally to higher highs next week. Best to your weekend!

MEDIUM TERM: downtrend bottomed at SPX 1200

LONG TERM: bear market

CHARTS: http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID1606987